News
LDA denies Capital claims to suppliers and staff of late payment
Suppliers and former staff at failed large format printer Capital have questioned the reason given for the company's sudden crash into administration.
East-London-based Capital went into administration last Thursday (26 June) with insolvency practitioner Begbies Traynor.
Suppliers and employees have said they were told prior to the company's fall that the reason it was struggling to make payments was because the London Development Agency (LDA), which was compensating Capital for moving out of the Olympic zone in July 2007, owed Capital in the region of £3.5m.
However, the LDA has denied this and said that full and final payment of compensation to Capital, which is believed to have been as much as £12m, was completed in the first week of June.
PrintWeek was contacted by several members of staff, who said that they were told "the bank had pulled the plug" on Capital.
Staff were informed that the LDA still owed the company more than £3m, which was the reason wages had not been paid.
And these claims have been backed up by several suppliers that have been in contact with PrintWeek since the administration.
Suppliers asked for support
Laurence Roberts, managing director at Agfa UK, said: "I got an email from David Gill saying 'I can't pay you for May, but we'll have the money we're owed from the LDA on 28 June.' We put him on stop and said when you pay we'll let you have some more plates.
"He didn't specify the amount - only that he was owed money by them and that's why he had a bit of a cash flow problem and that's why he couldn't pay May but he'd pay at the end of June."
Another supplier that was told a similar story is Colin Bailey, sales director at Colt Staplers, he told Printweek: "We had 90 days money outstanding and David Gill telephoned and informed me that due to the LDA not paying the larger amount of the money owed to them, some £3.5m he said, they were not in a position to pay us any money at this time.
"He asked if we could give Capital some help during this difficult time by still supporting them and supplying them with goods. David stated that they had started legal proceedings against the LDA for recovery of the money owed to them and they had until the 30 June to pay up, otherwise Capital was going to go to issue a high court writ for recovery of the money.
Bailey added that his company delivered £6,500 worth of goods to Capital just 24 hours before it went into administration.
One of the company's packaging suppliers, who wished to remain nameless at this time, added: "I went in and saw David Gill, he showed me some emails from solicitors showing that money was still owed. He said he would have the money by 4 July."
However, a spokesman for the LDA told PrintWeek: "Payments to Capital began in late 2006. Final payment, which consisted of around 20% of the total compensation package, was made in the first week of June 2008.
"The compensation was channelled through ours and Capital's solicitors and everything has been documented."
Capital staff praised
However, not all suppliers were told that the LDA was responsible for Capital's troubles.
Simon Biltcliffe, managing director at print manager Webmart, said: "We were prescient enough to have all our clients stock removed from Capital before they went into administration and we took the decision to move despite being assured by David Gill there was no problems and that they now had all the LDA payments.
"We were very grateful to our account managers at Capital who despite things falling apart around them, remained loyal and helpful to us until the very end- it's a measure of the people that Capital employed."
Suppliers and staff were told that Capital was stilled owed millions by the LDA
Comments
Andy Collier - 08 July 2008
"Payments to Capital began in late 2006. Final payment, which consisted of around 20% of the total compensation package, was made in the first week of June 2008."
So, the final payment was received early in June. By the end of June the company was in administration.
Draw you own conclusions.
lee pearman - 08 July 2008
[advertising deleted]
lee pearman - 08 July 2008
[advertising deleted]
Robin Nicholas - 08 July 2008
[edited]
Jack Sheperd - 08 July 2008
This adminstration has been "arranged" by the companies advisor M.Bunyard some months back everybody knows it but will anything be done to stop this bankrupt struck off director.
I think we already know the answer
rudolpho spena - 09 July 2008
hey rav phone curtis
Visual Display? - 09 July 2008
interesting that Mr Gill was touting £12m of business last week around the trade?? beware the sting in the tail all you suppliers and possible future clients, never deal with this family again. Years of hard work gone down the pan, the pack are now hunting down the clients we had, it's a disgrace, but come out stronger we will!!
Terence Love - 09 July 2008
Is Myles Bunyard definately struck odd as a director apart from his Bankrupt status?
Terence Love - 09 July 2008
Sorry struck off (how odd)
Jack Sheperd - 09 July 2008
Yes Bunyard was struck off from holding a directorship by the DTI a few years ago.
Mainly to do with his fathers car business but also wrong doing's at Multiplex, SMS Howard, Carter Litho, need I go on any further.
Robin Nicholas - 09 July 2008
Sounds like another Leslie Kerrison.
ex Employee - 09 July 2008
Jack, I think you have your facts wrong I have checked and his was not disqualified.....http://www.insolvency.gov.uk/doitonline/ddbase.htm where do you get your facts from ?
ANGEL LLEWELLYN - 09 July 2008
Here you go
http://www.snoop4directors.co.uk/search.asp?partner_id=Director
ex Employee - 09 July 2008
How could they engineer an Administration when Barclays appointed ?
Terence Love - 09 July 2008
Jack,I think you are wrong with respects his brothers Ross father in law has a car business and funded the buy out from the liquidator PKF sorry administatorand i belive he charged a 5 figure sum in interest,for 9 months.
Myles has been bankrupt 3 times in his short life but never disqualified from holding the position of Company director.
Terence Love - 09 July 2008
I am researching a few facts about him but at present all he has done against the law is accepting the position of a Company Director and possibly acting as a shadow directoreverything else is hearsay to my knowledge.
rudolpho spena - 09 July 2008
so who r really interested in buying capital
Terence Love - 09 July 2008
Not as many as should be, but more than can afford it; who ever takes over will only keep on less than half the staff, thats if they want to stay!
The rest will get paid by the state I am afraid and it will take 6 weeks or so. Sorry I can't give you any good news.
Plus the Factory belongs to the Gills
ex Employee - 09 July 2008
So you are interested in buy it then Terence ?
Jack Sheperd - 10 July 2008
Cannot see anybody buying the business as the Gills are touting the customers work around and control the freehold of the factory.
So what has been achived is they have got rid of the workforce and creditors and kept the building LDA cash, and the customer base.
and all planned back in Feb when M.Bunyard was appointed a director.
I wonder what his payment was?
Jack Sheperd - 10 July 2008
Terence
Check out the following companies
Multiplex Techniques
SMS Howard
Carter litho
WS3 Litho
I think you find that all these companies have ended up in CVL with large debts.
steven fisher - 10 July 2008
grow up jack sheperd
ex Employee - 10 July 2008
yeah Jack, do you have a job ?
Terence Love - 10 July 2008
Jack,
I have checked them out and I know all his dodgy deals including signing company cheques under the name Tony Dawes,and borrowing money from a staff member against un financed kit then financing if thru' SA.
Please Jack unless you have anything new to say please leave the forum and me to my work.
No disrespects intended.
How ever if you want to be helpful find out the name of the person who the Bunyard Boys outbid for in2000 for Multiplex
Jack Sheperd - 10 July 2008
Ok Terence will do
Did not know there was one, who was the person who was outbid for Multiplex?
Terence Love - 10 July 2008
ok leave this matter to me
rudolpho spena - 11 July 2008
new slow release pantry goose lotion with its intoxicating fragrance of mushroom and ox foot grown in the valleys of digwee
Terence Love - 14 July 2008
Can someone and I mean staff who were there answer the following questios please.
1/The precise time and date the doors were closed.
2/what were the resons given(all reasons please as I am sure there were various ones)
3/What time and date were the Administators first on the premises.
4/Did they make any reference to the possible sale of the company
5/when did Bunyard first appear on site,and what reasons were given to staff as why he was there.
6/Did he appear to be a boss i.e. did he issue instructions to any staff members.
7/How ofton was he there between February and the day of closure.
These answers will help me untangle this can(sorry bucket) of worms and whilst I can't give any gurantees it could help with your claims.
I am not a Jack Sheperd or Andy Hay I am retained by 2 PLC's who have been knocked for 6 figures.
Your comments are important for this case
rudolpho spena - 14 July 2008
fredo the italian brandy goat has received the medal of honour from pancho beebee the masked fish from knightbridge
Rik Moranis - 14 July 2008
Terence answers to your Q's below dont see how you can help any of us but there is no harm in sharing info I suppose
1) 26th June I personally left the building at 4pm door was locked behind me
2) Reason was that they owed the bank £900k and that they had frozen all there accounts hence unable to pay any wages
3) Not sure on this I have been told by other members that it was the same afternoon as closure
4) No references were made to me but I cannot vouch the rest of the ex employees
5) I was not aware Bunyard was involved in the company until exposed by Printweek back in February no reasons were for him being there were explained to me but again somebody else might no different
6) No
7) Not sure but he was there on the day of closure was discovered hiding in one of the offices and then made a swift exit
Terence Love - 14 July 2008
thank you very helpful
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